Section 43 of AASB 116 states that "Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item shall be depreciated separately". It doesn't specifically state how the assets should be broken up.

AASB 116 allows for components with similar useful lives to be grouped together.

Component Value Percentages

In the absence of more detailed information, it may sometimes be necessary to apportion the total replacement cost of a building amongst its components when recognising it in an asset register. The proportion of costs will of course depend on the type of building under consideration.

A series of tables showing component cost percentages for various building types would be one way of tackling this task.

The table below gives the percentage value of building components for Bundaberg Regional Council's entire building stock. It is intended as an example, not a suggested break up.